US FERC eases rules to speed gas infrastructure storm recovery

Washington (Platts)--17Nov2005

As part of its continuing effort to grease the skids for recovery of gas
deliverability in the wake of Hurricanes Katrina and Rita, the US Federal
Energy Regulatory Commission Thursday temporarily eased regulatory
requirements for replacing gas transportation capacity.

     Separately, Chairman Joseph Kelliher on an interim basis delegated to
Office of Energy Projects Director Mark Robinson additional authority to
expedite the processing of natural gas project certificate applications. On a
case-by-case basis, the director will establish deadlines and coordinate
federal and state actions for all federal authorizations necessary for
proposed natural gas projects under sections 3 and 7 of the Natural Gas Act.

     "In the wake of Hurricanes Katrina and Rita, there is an urgent need to
strengthen our energy infrastructure. Our action today will prevent
unreasonable delays in decisions by other federal and state agencies on gas
infrastructure projects," Kelliher said.

     In easing its so-called "blanket certificate" requirements, the
commission hopes to make it easier for owners of existing facilities to repair
and/or replace damaged transportation capacity. Thursday's action raises the
project cost ceilings for construction of facilities that can be done without
coming to FERC for prior approval, staff officials explained.

     On a temporary basis, the commission increased the cost ceiling for
projects that can be undertaken without coming to FERC to $16-mil from $8-mil.
For projects that can be built on a "prior-notice" basis the new
ceiling is $50-mil, up from $22-mil.

     Further, FERC expanded the definition of facilities that qualify for such
treatment to include mainline pipelines.

     The lighter-handed regulatory conditions will "apply to any project which
provides increased or alternative access to gas supply," provided it can be
completed and placed into service by Oct 31, 2006, a staffer explained.

     The changes are intended to "help speed recovery" of gas infrastructure
and bring more gas "to the marketplace just when consumers will need it most,"
Kelliher said. "This follows on the heels of other commission actions to
authorize efficient use of existing infrastructure," he continued. 

                               ---Chris Newkumet, chris_newkumet@platts.com

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